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At optimal output, calculate the profit, break even or loss.

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Answer the question below on the basis of the following cost data for a purely competitive seller:

Total Product TFC TVC
0 $50 $0
1 50 70
2 50 120
3 50 150
4 50 220
5 50 300
6 50 390

If the product price is $60, at its optimal output will the firm realize an economic profit, break even, or incur an economic loss? How much will the profit or loss be? Show calculations.

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Solution Summary

This post shows how to calculate the profit and loss at optimal output.

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Total Product TFC TVC MC
0 $50 $0
1 50 70 70
2 ...

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